- Prizes on the latest models reach Rs150,000.
- Imported phones taxed under existing scheme.
- Report on the issue is submitted in March before NA.
The Federal Board of Revenue (FBR) has said that taxes on expensive imported mobile phones affect only a small segment of consumers, noting that premiums on new high-end models are around Rs 150,000.
“This is only a 5% customer issue,” FBR Chairman Rashid Langrial told the Senate Standing Committee on Finance, which was debating a petition filed by the Federation of Chambers of Commerce and Industry in Islamabad.
Langrial said 95% of mobile phones in the country are now manufactured locally, adding that only imported devices face the current tax structure.
He noted that consumers who already pay large premiums for luxury models should have no problem paying tax due. “The problem is only with high-end phones. If someone can pay a premium of Rs. 150,000, why can’t they pay taxes?” he remarked.
The FBR chief reiterated that charges apply to imported phones, not local ones, and that concerns raised by industry stakeholders would be addressed in detail.
He assured the committee that the tax authority will submit its report on the matter to the National Assembly by March and the same findings will also be shared with the committee.
During the National Assembly’s Standing Committee on Finance a day earlier, PPP MNA Qasim Gillani said that there is too much tax on smartphones as they already cost too much and are beyond the reach of the common man.
The MNA added that people were even forced to pay taxes again if their phones were stolen.
FBR chairman Langrial had told the committee that prices of several major brands had fallen, but acknowledged concerns over valuation. “If the FBR rate is higher than the market rate, it will be reduced,” he assured.
Tax authorities added that duty was imposed on the price of the phone, not the model. Revenue officials said mobile phones contributed Rs82 billion in revenue last financial year.
